Fiscal Note
Under this program, MG&E would buy back the photovoltaic (PV)-generated power at the rate of 25 ct/kWh instead of the regular rate of 10 ct/kWh. This would increase annual revenues at 1602 Emil Street by $788 annually, and also provide revenues of $3,000 annually for future PV systems at Alicia Ashman Library , Greentree and Demetral Landfills combined. The City Risk Manager has indicated that the City's existing insurance policy applies, subject to its terms and conditions, to the risk imposed by the indemnification provisions. No additional appropriation is required.
Title
Authorizing the Mayor and City Clerk to sign a Distributed Generation Interconnection Agreement for photovoltaic generation with Madison Gas and Electric Company as part of the "Clean Power Partner" Program, authorizing indemnification of MG&E for purposes of the Emil Street site, approving a request for waiver from the PSC and authorizing future interconnection agreements for eligible city-owned PV installations already installed and in the future.
Body
WHEREAS, the City of Madison is committed to reduce energy consumption and its carbon footprint; and,
WHEREAS, the City of Madison adopted the goals set in the "Building A Green Capital City: A Blueprint for Madison's Sustainable Design and Energy Future" ; and,
WHEREAS, the City has installed a Photovoltaic System of 4.1 kW in size at 1602 Emil Street, and has budgeted or will budget to install more systems at other sites (Alicia Ashman Library, Greentree Landfill, Demetral Landfill); and
WHEREAS, Madison Gas and Electric ("MG & E") supports the installation of Photo Voltaic systems with the "Clean Power Program" and purchases PV-generated power at an above market rate to stimulate solar-electric generation; and,
WHEREAS, under this program, MG & E would buy back the PV-generated power at the rate of 25 ct/kWh instead of the regular rate of 10 ct/kWh, which would increase annual revenues at 1602 Emil Street alone by $788 ; and,
WHEREAS, in order to purchase the City's PV-generated power through the Clean Power Program, MG & E must use the Standard Interconnection Generation Agreement form approved by the Public Service Commission ("PSC"); and
WHEREAS, the term of that Agreement is perpetual but the tariff buy-back rate is in effect for 10 years and the Agreement allows the city to terminate with 30 days written notice or upon mutual written agreement of the parties; and
WHEREAS, the PSC's approved contract and Wisconsin Administrative Code, Chapter PSC 119 specifically require mutual indemnification for direct actual damages; and
WHEREAS, APM 1-1 requires Common Council approval before the City indemnifies another party in a contract; and
WHEREAS, the Risk Manager and City Attorney recommend seeking a waiver of this provision from the PSC for future photovoltaic interconnection generation agreements;
NOW, THEREFORE, BE IT RESOLVED that the Common Council hereby approves the City's participation in MG & E's "Clean Power Partner" program; and
BE IT FURTHER RESOLVED that the Common Council authorizes the Mayor and City Clerk to sign an interconnection agreement with Madison Gas and Electric Company for the photovoltaic generation system at 1602 Emil Street; and
BE IT ALSO RESOLVED THAT the Common Council authorizes the indemnification of MG & E to the extent necessary to comply with PSC 119 for the Emil Street site; and further authorizes City staff to pursue a waiver of the indemnification and insurance requirements of PSC 119 as deemed appropriate by the City Attorney, which may include petition or other formal action before the Public Service Commission; and
BE IT ALSO RESOLVED that if the PSC waives the indemnification and/or insurance requirements of PSC 119 to the satisfaction of the City Attorney or if subsequent interconnection agreements do not include such requirements, the Mayor and City Clerk are authorized to sign an amendment to the Emil Street agreement and future interconnection agreements with MG& E for photovoltaic generation and buy-back at other city sites, in a form approved by the City Attorney; and
BE IT FINALLY RESOLVED that if the city does not obtain a waiver of the PSC indemnification requires, city staff shall consult with the Risk Manager and seek Common Council approval for the indemnification of MG&E and to authorize the Mayor and Clerk to sign any future photovoltaic interconnection agreements, as required by APM 1-1.